Stung by avian flu and other factors, Hormel Foods experienced declines in sales and profit for the most recent quarter compared with last year – but its yearly numbers went up.
Sales for the quarter ending Oct. 30 were $3.28 billion, down 5% from the same quarter last year, and net earnings came to $279.9 million, down 0.6% year-over-year. However, for the entire fiscal year, sales came to $12.5 billion, up 9.4% from last year, and net earnings were $1 billion, up 10%.
Due to an outbreak of avian flu that affected Hormel’s turkey stocks, net sales for Jennie-O Turkey Store products in the fourth quarter were down 15%. However, profit in that segment jumped 149%, which a company statement attributed to “higher commodity prices and improved value-added mix.” CEO Jim Snee said in that statement, “Segment profit growth was due to the Jennie-O Turkey Store segment, as the team effectively managed limited turkey supply and maximized operational performance.”
The Refrigerated Foods segment, Hormel’s largest in sales, saw a 19% drop in quarterly volume and a 15% decline in profit, to $167.4 million year-over-year. The company statement attributed this to “lower commodity sales resulting from the company's new pork supply agreement.”
